✨ Financial Reporting Standards
856 NEW ZEALAND GAZETTE, No. 37 26 FEBRUARY 2008
Deferred Tax
Under NZ IFRS, deferred tax will be calculated using a “balance sheet” approach which recognises deferred tax assets and liabilities by reference to differences between the accounting and tax values of balance sheet items rather than the accounting and tax values recognised in the Statement of Financial Performance, which is the basis of the current calculation under NZ FRS (the “income statement” approach). This is likely to impact the levels of deferred tax assets and liabilities recorded by the company.
Employee benefits
Short term benefits
Short term employee benefits have been accrued based on the current pay rate in respect to employee services up to that date and not at an estimated future rate. No material adjustment is expected to be required under NZ IFRS.
Long term employee benefits
Long service leave has been accrued based on the current pay rate in respect to employee services up to that date and not at an estimated future rate. No material adjustment is expected to be required under NZ IFRS.
Reclassification of computer software
Under NZ IFRS, computer software is classified as an intangible asset rather than property, plant and equipment. The resultant impact on the Income Statement is that any depreciation will be reclassified as amortisation.
The IFRS impact on the disclosure accounts has not yet been specifically considered in light of the impending changes to the regime.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 37
Gazette.govt.nz —
NZ Gazette 2008, No 37
✨ LLM interpretation of page content
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Implementation of International Financial Reporting Standards by Counties Power Limited
(continued from previous page)
💰 Finance & Revenue26 February 2008
International Financial Reporting Standards, NZ IFRS, Financial Statements, Deferred Tax, Employee Benefits, Computer Software, Intangible Assets